BNZ grows advisers flows but keeps them low

BNZ is seeing strong flows from mortgage advisers, however it doesn’t plan to make the channel as big as some of its competitors.

Friday, May 4th 2018, 11:08AM

In its results to March 31 BNZ reported that 13% of its home lending book has come from mortgage advisers. In the past six-month period around 19% of the mortgage flow came from this channel.

BNZ chief financial officer Peter MacGillivray said the bank is “relatively comfortable” having around 20 to 25% of its flow coming from advisers.

This is significantly less then ANZ, which reported that 41% of its flows came through mortgage advisers.

ASB refuses to release figures around the make up of its home loan book, and Westpac is due to release its next set of results on Monday.

“We are very supportive of our proprietary channels. It’s the relationship with our customers which is very important to us.”

MacGillivray says BNZ is looking to see “how we can leverage the broker channel going forward.”

While it deals with the large majority of the adviser channel, and is currently in the process of on-boarding Mortgage Supply advisers, he says “we work with a few mortgage broker aggregators” and that allows BNZ to be a little bit more strategic and manage the quality of business.